Gaining altitude with PwC
August 2012
At a glance
With an asset and working capital intense environment, the ability of companies to react to a changing demand is paramount for continued growth and customer satisfaction. PwC has identified opportunities to incorporate leading practices into commercial aviation spares forecasting.
Issue 3: Value chain maturity: Focus on commercial aviation spares forecasting best practices
In the $50 billion commercial aviation maintenance, repair, and overhaul (MRO) market, the area of spares forecasting has significant opportunities for improvement. With an asset and working capital intense environment, the ability of companies to react to a changing demand is paramount for continued growth and customer satisfaction.
PwC, with the encouragement of several major original equipment manufacturers (OEMs), worked with industry leaders from around the world to understand current leading/next practices to improve spares forecasting. Understanding these improvements is foundational to supply chain and MRO excellence throughout the OEMs, operators, and third-party MRO/spares value chain.
- Better leading indicators for future demand signals for repairs and spares
- Improved information to reduce lead times on aircraft parts turnaround time
- Opportunities to reduce spares inventories across the value chain
- Better organizational alignments enhancing communication
In addition, PwC identified opportunities to incorporate leading practices into commercial aviation spares forecasting as well as next practices that should be considered.
Related reading:
Spares forecasting: A commercial aviation perspective on value chain maturity and best practices
Commercial airlines and aerospace and defense companies need to develop demand forecast information to improve their inventory and manufacturing operations while accounting for predicted and unexpected maintenance.
Read other issues in the Gaining Altitude series:
- Issue 6: Innovation and the path to success for Aerospace & Defense companies
- Issue 5: Earned Value Management System challenges in a changing environment: Are you ready?
- Issue 4: Globalization: Aerospace suppliers need a flight plan to sustain growth
- Issue 2: Supplier management: Can aircraft manufacturers prevent rate ramp-up problems?
- Issue 1: Supply chain and manufacturing: Focus on three "Vs" to improve supply chain management
Read this issue